News of the deal sent shares in Digital Animation up from 26p to 105p yesterday. Digital Animation developed the real-time text-to-voice technology behind Ananova.
It is expected that the PA will use the funds to create more content for its news and information services as well as for paying returns to shareholders. As part of the deal, PA will deliver news and information services to Orange.
It is not yet clear how Orange will use Ananova, since it is a technology requiring high bandwidth, and therefore unsuited to WAP enabled phones and devices. The Ananova chief executive commented that “Ananova will be the friendly face of Orange”.